Bros Eastern Co (SHSE:601339) Operating Margin %: 11.40% (As of Mar. 2026) — 34% Above Median

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SHSE:601339 Bros Eastern Co Ltd SHSE:601339
81 GF Score
Price ¥7.90
GF Value ¥6.30
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Bros Eastern Co Operating Margin %?

Bros Eastern Co SHSE:601339 -1.00% 81 Operating Margin % is 11.40% as of Mar. 2026, which is 34% above its 10-year median of 8.52. GuruFocus rates SHSE:601339 with a GF Score™ of 81/100 and a GF Value™ of ¥6.30 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,038 Manufacturing - Apparel & Accessories companies, Bros Eastern Co ranks better than 74.47% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Bros Eastern Co's Operating Income for the three months ended in Mar. 2026 was ¥227 Mil. Bros Eastern Co's Revenue for the three months ended in Mar. 2026 was ¥1,988 Mil. Therefore, Bros Eastern Co's Operating Margin % for the quarter that ended in Mar. 2026 was 11.40%.

Warning Sign:

Bros Eastern Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.3%.

The historical rank and industry rank for Bros Eastern Co's Operating Margin % or its related term are showing as below:

SHSE:601339' s Operating Margin % Range Over the Past 10 Years
Min: 1.62   Med: 8.52   Max: 18.79
Current: 9.4


SHSE:601339's Operating Margin % is ranked better than
74.47% of 1038 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.12 vs SHSE:601339: 9.40

Bros Eastern Co's 5-Year Average Operating Margin % Growth Rate was -2.30% per year.

Bros Eastern Co's Operating Income for the three months ended in Mar. 2026 was ¥227 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥763 Mil.


Bros Eastern Co  (SHSE:601339) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Bros Eastern Co Operating Margin % Related Terms


Bros Eastern Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Bros Eastern Co's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Bros Eastern Co Operating Margin % Chart

Bros Eastern Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.79 18.72 1.62 4.59 8.80

Bros Eastern Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.98 10.17 5.69 10.58 11.40

Bros Eastern Co Operating Margin % Competitor Comparison

For the Textile Manufacturing subindustry, Bros Eastern Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bros Eastern Co Operating Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Bros Eastern Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Bros Eastern Co's Operating Margin % falls into.


SHSE:601339
81GF Score
Bros Eastern Co Ltd SHSE:601339
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Bros Eastern Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Bros Eastern Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=692.045 / 7860.604
=8.80 %

Bros Eastern Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=226.698 / 1987.938
=11.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 11.40% mean?
Bros Eastern Co (SHSE:601339) has a Operating Margin % of 11.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Bros Eastern Co and its competitors. This is 34% above median its historical median of 8.52. Over the past decade, Bros Eastern Co's Operating Margin % has ranged from 1.62 to 18.79. According to the industry distribution chart, Bros Eastern Co ranks #265 out of 1038 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 25.5%.
Is Bros Eastern Co's Operating Margin % too high?
Bros Eastern Co's current Operating Margin % of 11.40% is 34% above median its 10-year median of 8.52. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 18.79. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.12. Bros Eastern Co's value of 11.40% is 176.7% above this industry median. Based on the distribution chart, Bros Eastern Co ranks #265 out of 1038 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Bros Eastern Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bros Eastern Co's Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Bros Eastern Co ranks #265 out of 1038 companies for Operating Margin %. This puts Bros Eastern Co in the upper half of its industry. The industry median Operating Margin % is 4.12. Bros Eastern Co's value of 11.40% is 176.7% above this benchmark. Historically, Bros Eastern Co's own Operating Margin % has ranged from 1.62 to 18.79 over the past decade. While the company's 10-year median is 8.52 vs. the industry median of 4.12, Bros Eastern Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.12, based on 1,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bros Eastern Co's current Operating Margin % of 11.40% is 176.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Bros Eastern Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bros Eastern Co's current Operating Margin % is 11.40%, which is 34% above median its own 10-year median of 8.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bros Eastern Co stock overvalued right now?
Based on GuruFocus' analysis, Bros Eastern Co (SHSE:601339) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥6.30, compared to a current price of ¥7.90 — trading 25.4% above its estimated fair value. The current Operating Margin % is 11.40%, which is 34% above median its 10-year median of 8.52 and 176.7% above the Manufacturing - Apparel & Accessories industry median of 4.12. Bros Eastern Co's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Bros Eastern Co (SHSE:601339), the current Operating Margin % is 11.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Bros Eastern Co (SHSE:601339) Overvalued in 2026?

Based on GuruFocus' analysis, Bros Eastern Co stock appears to be overvalued. The current stock price of ¥7.90 is trading 25.4% above its estimated GF Value™ of ¥6.30. GuruFocus considers Bros Eastern Co to be Modestly Overvalued.

Key valuation signals for SHSE:601339:

  • Operating Margin %: 11.40% (34% above median its 10-year median of 8.52)
  • GF Value™: ¥6.30 vs. price of ¥7.90 (25.4% above fair value)
  • GF Score™: 81/100 with 7 warning signs
  • Industry Position: 176.7% above the Manufacturing - Apparel & Accessories median (#265 of 1038)

No single metric tells the full story. See the SHSE:601339 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Bros Eastern Co Business Description

Address 1 Nan'er East Road, LuoTuo Town ZhenHai District, Ningbo, CHN, 315200
Bros Eastern Co Ltd operates in the textile industry. The company is specialized in research and development, manufacturing and marketing of top-dyed melange yarn. Its products are categories into classical series, neo yarn series, and trend colors.
81GF Score

Get the complete analysis for SHSE:601339

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥7.90
Price
¥6.30
GF Value